KAPURT INVESTMENTS PVT. LTD. HAVING ITS ADMINISTRATIVE OFFICE AT NO. 12, BRIGADE ROAD, BANGALORE-560001 REPRESENTED HEREIN BY ITS MANAGING DIRECTOR MR. KAMAL KAPUR Vs. D. VINOD SIVAPPA

JUDGEMENT

(1.) THE appellants herein are the plaintiffs in O.S. No. 8864/2004. The suit in question was filed by the plaintiffs seeking to recover the amount of Rs. 10,60,553/ - indicated therein as the interest being due and payable in respect of the loan of Rs. 15 lakhs which had been advanced to the defendant. The Court below after considering the rival contentions has dismissed the suit. The plaintiffs are therefore before this Court assailing the said judgment. The brief facts are that the plaintiffs are a company which is registered in accordance with law. The plaintiffs being engaged in the business of providing financial assistance had been approached by the defendant for loan. In that regard a sum of Rs. 15 lakhs had been advanced by the plaintiffs to the defendant on 21.08.1999. The said amount was agreed to be repaid with interest at the rate of 18% per annum. Since the said amount had accrued interest, accordingly a sum of Rs. 19,27,500/ - was due as on 31.03.2001. The defendant is stated to have paid a sum of Rs. 90,000/ -and as such the balance as on the said date remained at Rs. 18,37,500/ -. The defendant therefore issued the cheque dated 25.06.2001 for a sum of Rs. 3,37,500/ -which was the interest portion of the amount and another cheque of even date for a sum of Rs.15 lakhs which was the principal amount which had been advanced. However, on presentation of the said cheques the same were returned with the endorsement that it is being returned as the funds in the account held by the defendant is insufficient to honour the said cheques. The plaintiffs therefore initiated proceedings under Section 138 of the Negotiable Instruments Act and the case was registered in CC No. 27204/2001. The case of the plaintiffs is that since the said amount of Rs. 15 lakhs was still outstanding and in addition the interest was also not paid, the principal amount continued to accrue interest even thereafter. Hence the instant suit was filed claiming the interest for the periods from 31.03.2001 upto 23.06.2004 that is the date on which the cheque towards the principal amount had been paid. It is therefore contented that the amount had accrued interest which was payable by the defendant as claimed in the plaint.

(2.) THE defendant on entering appearance did not dispute the fact that the defendant had borrowed a sum of Rs. 15 lakhs and the interest that was agreed to be paid at the: same rate as stated by the plaintiffs. However the contention which was putforth in the written statement is that while disbursing the amount only a sum of Rs. 13 lakhs had been paid and as such a portion was held back towards interest. That apart the contention in the written statement is that during the pendency of the complaint under Negotiable Instruments Act in CC No.27204/2001 the amount of Rs. 18,37,500/ - had been paid and therefore the same constitutes discharge of the entire amount which was due and payable to the plaintiff. Hence, it is contended that no further amounts are due from defendant to the plaintiffs.

(3.) THE plaintiffs in order to discharge the burden cast had examined one Sri. Kamal Kapoor as PW1 and relied upon documents as Exs. P1 to P8 in support of the claim. The defendant examined himself as DW1 and the document at Ex. D1 was relied upon. The Court below on analysing the same has arrived at the conclusion that the plaintiffs are not entitled to the relief claimed.